ADA is nearing its 20-day Exponential Moving Average (EMA) currently. This measure tracks an asset’s recent average price over the previous 20 days, placing additional weight on near-term action. If Cardano pushes above this line, it could mark a clear shift from a bearish to bullish trend.

A breakout above the 20-day EMA would confirm rising buying pressure. It would also turn this moving average into a support level, giving bulls more control over the market.

On-chain data adds to the optimistic outlook. Santiment analytics platform shows that Cardano’s Network Realized Profit/Loss (NPL) turned negative. That is, the majority of owners are sitting on losses, and thus, are less likely to sell. As a result, supply runs out, which pushes prices upward in the short run.

Further strengthening the case for a rally is the positive reading on Cardano’s Chaikin Money Flow (CMF). Currently at 0.04, this metric shows more money flowing into ADA than out of it. It reflects strong accumulation from investors.

If this momentum continues, ADA could target the $0.70 mark soon. However, a wave of profit-taking might see the price retreat to around $0.55. For now, bullish sentiment remains in charge.